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1. Financial Analysis and Comparison of Gamma Chemicals Submitted By: - Anushka Sharma (24MAF10012 ) Adarsh Yadav (24MAF10013) Siddharth Sharma (24MAF10014 ) Piyush Chawla (24MAF10015) Mansha Gulati (24MAF10016)

2. Table of Contents 01 Overview of Gamma Chemicals 02 Ranking of Companies 03 Comparison with Top 3 Companies 04 Appendix: Detailed Workings 05 Final Thoughts and Thank You

3. 1 Overview of Gamma Chemicals Gamma Chemicals is a manufacturing trading organization for chemicals & allied products specialized in waterborne polymer dispersions. A leading supplier of chemical products to Paints, inks, Packaging, Detergents, Cosmetics, Rubber, Latex, Textile, Food and Pharmaceutical industries. With a market capitalization of €1.69 Billion , Gamma Chemicals showcases robust financial health and significant industry presence.
Annual revenue stands at an impressive €4.5 Million, reflecting consistent growth and market demand . Join us as we delve deeper into financial ratios and performance metrics that highlight Gamma Chemicals' journey.

4. 2 Ranking of Companies Let's explore the essential financial ratios that define Gamma Chemicals' performance.
The current ratio measures Liquidity Ratio, PE Ratio, Debt Equity Ratio, Asset Turnover Ratio, Net Profit Ratio. ensuring the company meets short-term obligations effectively and its financial strategy. Company Liquidity Ratio PE Ratio Debt Equity Ratio Asset Turnover Ratio Net Profit Ratio IRR FV Overall Rank Alpha Chemicals 2.86 25.00 1.25 2.22 0.40 9% ₹769.31 4 Beta Chemicals 2.78 24.00 1.03 1.97 0.42 7% ₹701.28 5 Gamma Chemicals 2.50 36.67 1.50 2.44 0.27 8% ₹734.66 3 Delta Chemicals 1.14 26.00 1.67 2.03 0.38 6% ₹669.11 7 Epsilon Chemicals 2.33 25.00 1.50 1.00 0.40 5% ₹638.14 6 Zeta Chemicals 1.82 25.00 0.90 1.05 0.40 4% ₹608.33 8 Eta Chemicals 5.00 24.29 0.60 2.66 0.41 2% ₹552.04 2 Theta Chemicals 3.86 25.00 1.08 1.73 0.40 4% ₹608.33 9 Lota Chemicals 2.20 25.00 1.50 2.11 0.40 3% ₹579.64 10 Kappa Chemicals 1.77 2.50 1.27 1.47 0.40 2% ₹552.04 1

5. 3 Comparison with Top Three Companies Top 3 companies :- Kappa Chemicals ETA Chemicals Gamma Chemicals Market Leadership Position Gamma Chemicals is recognized for its strong market presence, which is reflected in several key indicators: High Price to Earnings (PE) Ratio (36.67) : This suggests that the market has high expectations for Gamma Chemicals' future growth. Investors are willing to pay a premium for its shares, indicating strong confidence in the company's long-term prospects. However, this also means that Gamma Chemicals is under pressure to meet these high expectations through consistent performance and growth. Strong Asset Turnover Ratio (2.44) : Gamma Chemicals efficiently utilizes its assets to generate revenue, indicating that the company is well-managed in terms of operational efficiency. This is a critical advantage in maintaining competitiveness in a highly dynamic market. Revenue Generation : The company's ability to turn over assets into sales at a higher rate compared to many competitors (though slightly trailing behind Eta Chemicals) reflects its strong operational strategies and effective use of resources. Brand Recognition and Market Positioning : Gamma Chemicals has established itself as a significant player in the chemical industry, contributing to its strong market valuation. The company's reputation for quality and innovation helps it attract and retain a solid customer base. Investor Confidence : With a PE ratio higher than its competitors, Gamma Chemicals is seen as a growth-oriented company. This investor confidence can translate into easier access to capital for expansion, research, and development, enabling the company to explore new opportunities in the market .

6. Areas for Improvement While Gamma Chemicals demonstrates considerable strengths, there are specific areas where the company can focus on to maintain and enhance its competitive edge: Liquidity Ratio (2.50) : Compared to Eta Chemicals (5.00), Gamma Chemicals' liquidity ratio is lower, suggesting that the company has less of a buffer to meet its short-term liabilities. To strengthen its financial stability, Gamma Chemicals should consider improving its liquidity by optimizing working capital management, perhaps by shortening receivable cycles or better managing inventory. Enhancing liquidity would provide a greater safety net during periods of market volatility. Debt to Equity Ratio (1.50) : Gamma Chemicals has a relatively high debt-to-equity ratio compared to its competitors, particularly Eta Chemicals (0.60). This reliance on debt financing could be risky in the event of an economic downturn or interest rate hikes. To reduce financial risk, Gamma Chemicals should aim to decrease its debt levels by focusing on increasing equity financing or retaining more earnings to fund growth initiatives. This will not only reduce interest expenses but also improve the company's financial health. Sustainable Growth and PE Ratio : While the high PE ratio is a positive sign of market confidence, it also places Gamma Chemicals under scrutiny. The company must ensure that it continues to deliver on growth expectations through strategic investments, innovation, and expanding its market share. Any failure to meet these expectations could result in a significant drop in stock price, which would negatively impact investor sentiment. Operational Efficiency : Although Gamma Chemicals shows strong asset turnover, it still trails behind Eta Chemicals. To close this gap, Gamma Chemicals should look into further optimizing its operations, possibly through technology upgrades, streamlining production processes, or reducing operational costs. This could enhance profit margins and improve the company's overall financial performance. Market Penetration and Diversification : Gamma Chemicals should consider expanding into new markets or diversifying its product offerings to reduce dependency on existing market segments. This could include exploring emerging markets or investing in sustainable and green technologies, which are increasingly becoming a focus within the industry. Enhancing Innovation : Continuous investment in research and development (R&D) to drive innovation will be critical. By staying ahead of the curve in technological advancements, Gamma Chemicals can maintain its competitive advantage and keep pace with industry trends, particularly in areas such as sustainability and digitalization.

7. 4 Appendix: Detailed Working The calculations for the ratios and IRR are provided below: Liquidity Ratio = Current Assets / Current Liabilities PE Ratio = Market Capitalization / Net Profit Debt Equity Ratio = Total Debt / Total Equity Asset Turnover Ratio = Revenue / Total Assets Net Profit Ratio = Net Profit / Revenue IRR = (PV x (1 + r)^n) / (1 + r)^n - 1